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Bacolod City, Philippines Wednesday, March 23, 2016
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Sin tax collection
up 37.36 percent

Sin tax collection reached P18.46 billion in the first two months of 2016, up 37.36 percent from the P13.44 billion during the same period in 2015.

Data released by the Department of Finance yesterday showed that total sin tax collection as of end-February this year exceeded the government's P16.19 billion target for the two-month period by 14.05 percent.

Of the total, taxes from tobacco products registered the highest amount at P10.86 billion, 48.91 percent higher than year-ago's P7.29 billion.

This was 9.35 percent higher than the P9.93 billion target for the period.

Those collected from fermented liquors reached P5.55 billion, 29.54 percent higher than the P4.28 billion same period in 2015.

It exceeded by 31 percent the government's P4.24 billion target for the two-month period.

Taxes from distilled spirits, or compounded liquors, rose 10.19 percent to P2.06 billion and surpassed the P1.87 billion target for the period.

The government has been very elated with the results of its Reformed Sin Tax Law, following its amendment in December 2012, which in turn took effect on Jan. 1, 2013.

The amendment was made to align taxes with current market prices of tobacco and alcohol products as it was previously pegged against 1996 prices.

It was also amended to prevent the poor and the youth from accessing the products, as data show that bulk of the people affected by diseases caused by tobacco and alcohol belong to these sectors.

Part of the proceeds of the amended Sin Tax Law is mandated to be used for the government's healthcare program and the tobacco industry stakeholders.

In 2015, total sin tax collection amounted to P141.84 billion, 19.11 percent higher than the P119.08 billion target for that year.

Of the total, tobacco products posted the highest contribution amounting to P100.02 billion, 29.09 percent higher than the P77.48 billion target for the year.

Fermented liquors followed at P28.26 billion. This is, however, 1.01 percent lower than the P28.55 billion target.

Taxes from distilled spirits and compounded liquors came in third at P13.51 billion, 3.59 percent higher than the P13.04 billion target.

Wines contributed the least taxes at P0.05 billion but it posted the largest excess, vis-a-vis the target after it jumped 426.4 percent against the P0.01 billion goal.

Compared to the 2014 sin tax collections, last year's total collections rose 25 percent from P112.8 billion.*PNA

 

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Sin tax collection up 37.36 percent